Promising US Cannabis Stocks for the Second Week of October
As we enter the second week of October 2023, the US cannabis market is still receiving much attention. With legalization spreading throughout several states, the industry has seen impressive development and financial interest. We’ll present you with some of the top US marijuana stocks in this post, which are primed to attract the interest of both traders and investors in the upcoming week. We’ll go into the critical elements of using technical indicators and putting good risk management tactics into practice while trading in this dynamic and constantly changing market, in addition to the enthusiasm around these companies.
The US cannabis market has been on an impressive upward trend, supported by shifting legal frameworks and rising widespread acceptability. Several states had already legalized cannabis for medicinal and recreational use as of my most recent information update in September 2021, and, likely, more have since followed suit. Many cannabis businesses have seen significant revenue growth due to this rising acceptance, and analysts predict remarkable future market capitalization and sales figures.
However, trading and investing professionals must approach this market strategically and with prudence. The inherent volatility of cannabis stocks can be navigated by using technical indicators and sound risk management techniques, which can also assist in maximizing possible gains while reducing potential losses. The leading marijuana stocks to watch this week are discussed in the following paragraphs, along with tips on how to trade them sensibly in the present market climate.
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Cannabis Chronicles: Top US Marijuana Stocks to Follow This Week
- Green Thumb Industries Inc. (OTC: GTBIF)
- Planet 13 Holdings Inc. (OTC: PLNH)
- Acreage Holdings, Inc. (OTC: ACRHF)
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a major player in the US cannabis consumer packaged goods (CPG) sector. Currently, there are 83 Green Thumb locations spread throughout 14 states. With more on the coming, GTI will soon have 111 retail licenses. The first deal between GTI and the privately held Cookies Brand stipulates that Cookies will be opened on the Las Vegas Strip in 2021. Green Thumb has announced the launch of its marijuana business in Virginia following the successful acquisition of Dharma Pharmaceuticals. Having acquired Leafline Industries, the industry has now entered Minnesota. The company started selling cannabis for adult use on July 1st in four Maryland locations.
Highlights for the second quarter and six months ended June 30, 2023
- Second quarter revenue of $252 million increased 2% sequentially; first half 2023 revenue increased 1% to $501 million year-over-year.
- GAAP net income of $13 million or $0.05 per basic and diluted share.
- Adjusted EBITDA was $76 million or 30% of revenue.
- Six months of cash flow from operations of $93 million, net of $52 million of tax payments.
- Cash at quarter end totaled $149 million.
- Six RISE retail stores were opened: two in Pennsylvania, two in Virginia, and one each in Minnesota and Nevada.
GTBIF Stock Performance
On October 6th, GTBIF shares finished at $10.12, down 3.62% in the last trading month. The stock has a 52-week price range of $6.42-$16.50 and is up 17.13% year to date. According to analysts at CNN Business, GTBIF stock has a 12-month average price target of $14.07 per share. In this case, this would represent an increase of 39.05% from its last trading price of $10.12.
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Planet 13 Holdings Inc.
Planet 13 (www.planet13holdings.com) is a multi-award-winning cannabis corporation that engages in cultivation, production, and dispensary operations. Its offices are in Orange County, California, and Las Vegas, Nevada. A preliminary Illinois Social-Equity Justice Involved dispensary license and a Florida medical marijuana treatment center license are also held by Planet 13. Planet 13 aspires to become a well-known brand recognized for its innovative product development and premium cannabis retail operations.
Financial Highlights – Q2 – 2023
Operating Results
- All comparisons below are to the quarter ended June 30, 2022, unless otherwise noted.
- Revenue was $25.8 million as compared to $28.4 million, a decrease of 9.1%. The decline in revenue was driven by a decline in the average price of cannabis in Nevada, partially offset by an increase in wholesale revenue in Nevada.
- Gross profit was $11.9 million or 46.0% as compared to $13.8 million or 48.7%. The decline in gross profit was driven by a decrease in the average price of cannabis in Nevada and a greater percentage of revenue coming from lower-margin wholesale revenue.
- Total expenses were $15.4 million as compared to $15.6 million, a decrease of 1.6%. The decline in total expenses was driven by lower share-based compensation offset by higher professional fees associated with potential M&A.
- Net loss of $4.3 million as compared to a net loss of $2.0 million. The increase in net loss was driven by lower gross profit dollars as well as high one-time costs associated with potential M&A.
- Adjusted EBITDA of $3.0 million as compared to Adjusted EBITDA of $2.9 million. The higher Adjusted EBITDA margin was primarily due to improvement in the Company’s operating costs.
PLNH Stock Performance
PLNH stock closed on October 6th at $0.7883, down 26.33% in the last month of trading. In this case, the stock has a 52-week price range of $0.451-$1.51 and is up 29.23% year to date.
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Acreage Holdings, Inc.
Acreage Holdings, Inc. is a cannabis grower and retailer with sites around the United States. Acreage’s partnership with Canopy Growth Corporation (NASDAQ: CGC) could lead to an acquisition if the US prohibition ends. The economies of New York and New Jersey could grow significantly during the following few years due to their expansive geographic boundaries. The state with the most merchants with licenses is New Jersey, where Acreage plans to finish building its development center.
Second Quarter 2023 Financial Highlights
- Consolidated revenue of $58.1 million, an increase of 3.8% compared to the quarter ended March 31, 2023 (“Q1 2023”).
- Gross margin was 36%. Excluding the impact of non-cash inventory adjustments, the gross margin for Q2 2023 was 44%.
- Adjusted EBITDA* was $6.8 million, and Adjusted EBITDA* as a percentage of consolidated revenue was 12%.
ACRHF Stock Performance
ACRHF stock closed at $0.2685 on October 6th, up 7.40% in the last month of trading. The stock has a 52-week price range of $0.11-$1.25 and is down 47.35% year to date.
Leading US Cannabis Stocks for the Second Week of October
In conclusion, as we move towards the second week of October 2023, investors are still watching the US marijuana industry’s development and evolution. Cannabis businesses have shown amazing resiliency in the face of shifting regulations and rising consumer demand, and they can make significant gains. Trading and investing must be watchful as the market landscape changes, using technical indicators and strong risk management techniques to negotiate the inherent volatility of this sector. People can take advantage of the opportunities provided by the US cannabis market while minimizing any risks by staying informed, keeping an eye on the top marijuana stocks covered in this article, and carefully managing their investments.
The cannabis sector in the US is representative of a dynamic environment where innovation and regulation coexist. Investors must approach legalization enthusiastically and cautiously as more states adopt it and the market develops. Enthusiasts and investors alike can participate in this exciting journey by keeping abreast of market developments and implementing prudent trading and investment practices. By doing so, they can take advantage of the potential of the top US marijuana stocks to potentially reap rewards while effectively managing risks in this fast-paced industry.
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